Financial remedy proceedings are the legal process that deals with the financial arrangements between a couple upon divorce.
There are three types of hearings in financial remedy proceedings, financial dispute appointments (FDAs), financial dispute resolution hearings (FDRs) and final hearings.
FDAs
An FDA is the first hearing in divorce hearings. This hearing is a directions hearing in which the court will make an order as to what needs to happen ahead of the next hearing.
The court can make a number of directions including (but not limited to):
- Providing evidence of mortgage raising capacity.
- Providing property particulars to be put forward to show what property you deem suits yours and your ex-partner’s needs.
- Making open offers to be made between parties.
- Responses to questionnaires raised by the other side.
These directions will ensure the parties are ready for full negotiations at the next hearing, the FDR.
FDRs
At an FDR, both parties will go before the judge and set out their positions. Upon hearing this, the judge will give an indication as to what they believe may be the likely order at the final hearing.
Based on this indication, the parties will then leave the court room and negotiate, making offers to each other in an attempt to settle. The judge cannot order parties to settle. When the parties are represented, the negotiations will take place between counsel, on the parties’ behalf.
An important feature of FDRs is that they are ‘without prejudice’ which means, whatever happens at the FDR, stays at the FDR. The judge that hears the FDR cannot hear the final hearing.
If an agreement is reached between the parties, the judge will be invited to approve the order. If this happens, the matter shall not progress any further, it will be settled. The final decision is with the judge, however.
In the event that settlement cannot be reached, directions will be ordered in readiness for a final hearing. These directions could include filing a narrative statement under s25 of the Matrimonial Causes Act 1973.
Final Hearings
At the final hearing both parties may be required to give oral evidence and be cross examined. The judge will hear the evidence and submissions from the legal representatives and make a final order.
When making the order, the judge will consider the factors set out under s25 of the Matrimonial Causes Act:
- Income, earning capacity, property and other financial recourses of the parties.
- Financial needs, obligations and responsibilities of the parties.
- Standard of living enjoyed by the family before the breakdown.
- Age of each party and the duration of the marriage.
- Physical or mental disabilities.
- Contributions made or likely to be made in the foreseeable future.
- Conduct of the parties.
- Value of any benefit the party will lose the chance of acquiring as a result of the divorce.
Having heard the evidence and submissions, the types of order that can be made are:
- A lump sum order.
- Clean break order.
- Pension sharing.
- Order for sale of a property.
- Order for transfer of title.
Once this order has been made, the matter is completed.
If you need any help or representation at financial remedy hearings, please contact clerks@anvilchambers.co.uk.